Stocks News
- NYSE, NASDAQ plan to open China offices
Date: 28-May-2007 Sources: (Shenzhen Daily)
OVERSEAS stock exchanges including NYSE Euronext and NASDAQ Stock Market Inc. said Saturday they plan to open offices in China for the first time, amid efforts to woo Chinese companies to their bourses.
NYSE Euronext, NASDAQ, London Stock Exchange and Deutsche Boerse AG are all preparing to set up representative offices in China when regulations that take effect July 1 allow them to do so, said the bourses' executives at a private equity conference in Beijing.
'Setting up shop locally will allow us to conduct many more promotional activities on the ground, and to be in closer touch with Chinese companies,''Rainer Reiss, a Frankfurt-based managing director at Deutsche Boerse, said.
Foreign bourses are looking to win a share of lucrative stock sales by Chinese companies. Domestic initial public offerings will probably amount to US$25 billion to US$30 billion in 2007, more than the US$20 billion to US$25 billion expected for Hong Kong, according to Jing Ulrich, JP Morgan's Hong Kong-based chairman of China equities.
The nation's benchmark CSI 300 Index has surged more than 90 percent this year as firms like Ping An (Insurance) Group Co. raised US$5 billion domestically, the world's biggest stock sale by an insurer.
Overseas bourses aren't the holy grail for 100 percent of Chinese firms, Reiss said. 'But an overseas listing is helpful for companies looking for strategic acquisitions and brand recognition abroad.''
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